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DHIRAJ SINGH THAKUR, KAMAL KHATA
Deepak Marda – Appellant
Versus
Income Tax Officer – Respondent
JUDGMENT
Kamal R. Khata, J. - This petition challenges the impugned notice under section (u/s) 148 of the Income Tax Act, 1961 ('Act') dated 31st March 2021 and the impugned order on objection dated 10th June 2022 in addition to the impugned reassessment proceedings for Assessment Year (A.Y.) 2014- 15.
Facts:
2. The petitioner was a director of Cinepolis India Pvt. Ltd., Gurgaon and was assessed to tax in Ichalkaranji, Kolhapur. In 2007 petitioner had collaborated with the Cinepolis Group to set up Cinepolis India and had acquired certain shares and irrevocable vested rights to equity in Cinepolis India. In Financial Year (F.Y.) 2013-14, the petitioner transferred the equity shares and rights in Cinepolis India for Rs.33,55,12,980/- under a settlement agreement. The petitioner incurred an expense of Rs.1,31,87,400/- towards lawyers, Chartered Accountants, Escrow Agents etc. for the said transaction. The petitioner filed his return of income for A.Y 2014-15 on 31st July 2014 whereby the proceeds receipt from transfer of equity shares in Cinepolis India was disclosed under the head 'Capital Gains' and claimed deduction of legal expenses under the head 'Cost of Improvement', the said ret
The main legal point established in the judgment is that the reopening of an assessment must be based on tangible material and cannot be justified by a change of opinion or blindly relying on informa....
Reopening of assessment under the Income Tax Act requires tangible material; mere change of opinion is insufficient for reassessment.
Point of Law : Sufficiency of the evidence or material is not open to scrutiny by the Court but the existence of the belief is the sine qua non for a valid exercise of power.
Reopening of income tax assessments requires new tangible material; mere change of opinion is insufficient.
Point of Law : Assessment - Unless any income chargeable to tax has escaped assessment for such assessment year by reason o f the failure on the part of the assesse to disclose fully and truly all ma....
Reopening of assessment under the Income Tax Act after four years is impermissible without failure to disclose material facts; mere change of opinion does not justify such action.
Taxation - Escapement of assessment - Assessee had disclosed all material facts truly and fully for assessment of income for year under consideration. In other words there was no failure to disclose ....
The main legal point established is that the Assessing Officer's belief for the reassessment of income under section 148 of the Income Tax Act is based on subjective satisfaction and the existence of....
Point of law: It is no doubt true that the Court cannot go into the sufficiency or adequacy of the material and substitute its own opinion for that of the Income Tax Officer on the point as to whethe....
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